2017 GDP Figures Released

Statistics Canada today released results for 2017 GDP. The economy grew in 2017 by 3.0% (the high end of our forecast from November 1), driven by household spending, business investment in non-residential structures and machinery and equipment, and exports of goods and services. Of particular interest to members, investment in non-residential structures contributed about 0.02% to total GDP growth for the year; for comparison, machinery and equipment contributed about 10 times that. Total business investment, excluding residential structures, grew by 2.6% for the year after a decline of 9.4% in 2016. The forecast for 2018 is for slow growth in this area of the economy - about 0.8%, primarily as a result of public sector spending. Oil and gas spending intentions, indicating a decline of almost 12% for 2018, will be the major downward force.  However, if recent increases in oil prices continue, this may change although the effect will not likely be felt until the second half of the year. You can read the Statistics Canada report here.